Severance isn't required by federal law in most everyday terminations — but that doesn't mean the number on the table is final. Many severance offers are a starting point, not a take-it-or-leave-it deal. Here's a practical approach.
Step 1: Don't sign anything on the spot
You are generally not required to sign a severance agreement immediately. Ask for time to review it — many agreements even build in a required review period. Use that time.
Step 2: Understand what you're giving up
Most severance agreements include a release of claims — meaning you agree not to sue your employer in exchange for the payment. Read this section closely. Understanding what rights you're releasing is exactly the kind of question worth a free case review before you sign.
Step 3: Know your leverage
Your leverage typically comes from tenure, role seniority, any potential legal claims (see our signs of illegal termination guide), and how the departure is being handled publicly. Try the Severance Negotiation Calculator on our homepage for a general starting-point estimate based on your tenure.
Step 4: Ask for more than just cash
- Extended health insurance coverage (COBRA subsidy)
- Outplacement or career-transition support
- A neutral or agreed-upon reference
- Accelerated vesting of any equity, where applicable
- Flexibility on the timing of the payment
Step 5: Put your counter in writing
A calm, professional written counter-offer is usually more effective than a phone call. State clearly what you're asking for and why, without threats.
Step 6: Get it reviewed before you sign
A short attorney review before signing is one of the highest-value steps in this whole process — it's often the difference between a fair deal and leaving money or rights on the table.
Key takeaway
Severance offers are frequently negotiable. Take your time, understand what you're releasing, and consider a quick attorney review before you sign anything.
Recommended reading
Salary & severance negotiation book
Practical scripts and tactics for negotiating pay and severance.
Amazon →Never Split the Difference – negotiation book
A widely used negotiation framework applicable to severance talks.
Amazon →Job search organizer & planner
Stay organized while you negotiate and search simultaneously.
Amazon →Frequently Asked Questions
No, not in most ordinary terminations — it's usually discretionary or governed by a contract, policy, or a mass-layoff law like the WARN Act.
It's generally a good idea, especially since signing typically releases your right to bring certain claims — a free case review can help you understand what you'd be giving up.